BILL NUMBER: SB 1191	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 23, 2012

INTRODUCED BY   Senator Simitian

                        FEBRUARY 22, 2012

   An act to add Section 2924.9 to the Civil Code, relating to
landlord-tenant relations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1191, as amended, Simitian. Landlord-tenant relations:
disclosure of notice of  sale.   default 
 . 
   Existing law generally regulates the hiring of real property,
including, among other things, specifying certain obligations imposed
on landlords and obligations imposed on tenants. Existing law, until
January 1, 2013, requires a  resident   tenant
 of property upon which a notice of sale has been posted to be
provided a specified notice advising the  resident 
 tenant  that, among other things,  if the person is
renting the property,  the new property owner may either
give the tenant a new lease or rental agreement, or provide the
tenant with a 60-day eviction notice, and that other laws may
prohibit the eviction or provide the tenant with a longer notice
before eviction.
   This bill would require every landlord who is in default under a
mortgage or deed of trust  secured by a single-family dwelling,
or a multifamily dwelling not exceeding 4 units,  and who has
received a notice of  sale  default  from
the mortgagee, trustee, or other person authorized to take the
foreclosure  sale to disclose the notice of  sale
  default in writing  to any prospective tenant
prior to executing a lease agreement for the property  to be
sold  . The bill would also provide that a violation of
those provisions would  invalidate   allow the
tenant to void  the lease and entitle the tenant to recovery of
 all rent paid under the lease.   twice the
monthly rent or twice the amount of actual damages from the landlord,
and all prepaid rent, in addition to any other remedies that are
available. The bill would also provide that if the tenant elects not
to void the lease and the foreclosure sale has not yet occurred, the
tenant may deduct twice the monthly rent from future rent obligations
owed the landlord who received the notice of default. The bill would
specify the content of the written disclosure notice. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2924.9 is added to the Civil Code, to read:
   2924.9.  (a) Every landlord who is in default under a mortgage or
deed of trust  secured by a single   -family dwelling,
or a multifamily dwelling not exceeding four units,  and who has
received a notice of  sale   default  from
the mortgagee, trustee, or other person authorized to take the 
foreclosure  sale shall disclose the notice of  sale
  default in writing  to any prospective tenant
prior to executing a lease agreement for the property  to be
sold   subject to the notice  .
   (b) A violation of subdivision (a) shall  invalidate
  void  the lease  at the election of the
tenant  and shall entitle the tenant to recovery of  all
rent paid under the lease   twice the monthly rent or
twice the actual damages   , whichever is greater, and all
prepaid rent from the landlord who received the notice of default, in
addition to any other remedy that the law may provide  . 
   (c) In lieu of the remedies in subdivision (b), if the tenant
elects not to terminate the lease and the foreclosure sale has not
occurred, the tenant may elect to deduct twice the monthly rent from
future rent obligations owed the landlord who received the notice of
default.  
   (d) The written disclosure notice required by subdivision (a)
shall be substantially in the following form: 

The foreclosure process has begun on this property, and this property
may be sold at foreclosure. If you rent this property, and a
foreclosure sale occurs, the sale may affect your right to continue
to live in this property in the future. Your tenancy may continue
after the sale. In order for the new owner to evict you, the new
owner must provide you with at least 50 days' written eviction notice
or 90 days if required by any other provision of state or federal
law. However, some laws may prohibit eviction.